Alabama Auto Insurance

Alabama Car Insurance

In 2013, Alabama enacted the Mandatory Liability Insurance Law to help define Alabama car insurance rules for all drivers. The law now requires Alabama drivers to carry auto insurance for their registered vehicles.

Read more to learn about Alabama car insurance requirements, programs, rates and discounts.

Car Insurance Requirements

To fulfill Alabama car insurance laws, you must have liability insurance to help pay for any damages or injuries you may cause to others in a car accident.

Your liability coverage must include the following minimums:

• $25,000 for bodily injury or death per person.
• $50,000 total for bodily injury or death per accident.
• $25,000 for property damage.

Optional Car Insurance

Your liability insurance will not cover damages to your car or your personal injuries. However, most Alabama car insurance companies offer optional types of coverage to help with these costs.

When shopping for car insurance, consider these optional types of coverage:

• Collision – This will help pay for accident-related damages to your car.
• Comprehensive – This will help pay for damages to your car that are out of your control, such as those caused by inclement weather.
• Medical and funeral – This will help cover medical bills or funeral costs after an accident.
• Uninsured motorists –This coverage will help protect you after accidents involving drivers who don’t hold insurance or have policies that are not adequate to cover your costs.

NOTE: If your car is being financed or leased, you may be required to buy collision and comprehensive coverage as part of your finance agreement.

AL Insurance Violations and Penalties

If you are caught driving without proper Alabama car insurance, you face the following penalties:

• A fine of:
  • $500 upon your first violation.
  • $1,000 upon your second or subsequent violation.
• Suspension of your driver’s license for 6 months.
• Suspension of your car registration.
  • For a second or subsequent violation, your registration will be suspended for a mandatory 4 months.

If your vehicle registration is suspended due to a car insurance violation you will have to pay the following fees to have it reinstated:

• $200 for your first offense.
• $400 for your second and subsequent offenses.

SR22 in Alabama

When you have your driver’s license reinstated after a suspension, you may be required to file an SR22 with the state.

An SR22 certificate is not insurance; it is a form of proof of insurance that guarantees you will maintain the minimum requirements for car insurance.

All Alabama drivers must have at least minimum auto coverage. Alabama Insurance Agency, with locations in Pace and Pensacola, helps local drivers find the right coverage for the right price.